TransAlta Announces Closing of $350 Million Bought Deal Offering of Common Shares

• TransAlta closed a $350 million bought deal offering of 18,230,000 common shares at $19.20 per share.
• Net proceeds will fund the equity component of the $1.0 billion acquisition of two fully-contracted natural gas-fired peaking facilities (318 MW total) near Denver, Colorado, from Blackstone.
• The transaction assumes $750 million in senior secured, non-recourse project-level debt.
• Expected to generate ~$80 million in annual Adjusted EBITDA and ~$33 million in annual Free Cash Flow, with 100% contracted capacity over a 25+ year weighted average tenure.
• Underwriters retain a 15% over-allotment option for up to 2,734,500 additional shares (~$52.5 million).
• If the acquisition does not close, proceeds will reduce debt or fund future growth/corporate purposes.

• The financing close is routine execution of the June 3 announcement. It confirms the Colorado gas peaking acquisition is proceeding as planned. The stock's flat move into the print indicates the market had already priced in this execution step. The strategic benefit (contracted cash flows, Colorado foothold) is positive, but the leverage increase to 4.3x and persistent Alberta price headwinds limit upside surprise potential. This is not a re-rating event.

TransAlta Corporation is an independent power producer with a diversified portfolio of wind, solar, natural gas, and hydroelectric facilities across Canada and the United States. The company is transitioning away from coal-fired generation toward natural gas peaking, renewable energy, and data centre infrastructure. It operates primarily in Alberta, Ontario, and the Pacific Northwest, with a focus on capturing long-term contracted cash flows and leveraging existing transmission and land assets.